XN000022-1978-07-14 — Page 3

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FRIDAY, JULY 14, 1978

4. TRADING OPERATIONS UNDERTAKEN BY A SCHOOL ARE SUBJECT TO A CODE OF PRACTICE ISSUED BY THE EDUCATION DEPARTMENT AFTER CONSULTATIONS WITH THE CONSUMER COUNCIL IN 1974. THIS PROVIDES GUIDANCE TO SCHOOLS IN RESPECT OF SALES TO PUPILS OF TEXTBOOKS, EXEP'SE BOOKS, UNIFORMS, STATIONERY, EQUIPMENT AND OTHER ITEMS FOR THEIR COURSE OF STUDY. THE FOLLOWING FOUR GENERAL PRINCIPLES ARE IDENTIFIED:

(A) NO SUPERVISOR, MANAGER, STAFF OR EMPLOYEE OF THE SCHOOL

MAY DERIVE ANY ADVANTAGE. FINANCIAL OF OTHERWISE. FROM SUCH ACTIVITY WITHOUT THE WRITTEN APPROVAL OF THE DIRECTOR OF EDUCATION=

(B) PROPER ACCOUNTS MUST BE MAINTAINED=

(c)

D)

NO SALE SHOULD BE COMPULSORY (1.E. PARENTS AND PUPILS SHOULD BE AT LIBERTY TO MAKE THE IR PURCHASES ELSEWHERE)

PRICES SHOULD BE CLEARLY MARKED AND KEPT AS LOW AS POSSIBLE.

IN ADDITION, THE CODE OF AID (SEE PARAGRAPH 3) FURTHER PROVIDES THAT ANY PROFIT OR LOSS ARISING OUT OF ITEM (E) SHALL BE REFLECTED IN THE TONG FAI OR SUBSCRIPTIONS ACCOUNT.

5. THE INSPECTION OF THE PRECIOUS BLOOD GOLDEN JUBILEE SECONDARY SCHOOL ACCOUNTS TOOK PLACE FROM 19 APRIL TO 18 MAY 1977. THE PERIOD COVERED WAS FROM THE OPENING OF THE SCHOOL IN 1973 TO 31 MARCH 1977. THE RESULTS OF THE FINDINGS WERE SENT TO THE ATTORNEY GENERAL ON 1 JUNE 1977.

6. THE EDUCATION DEPARTMENT'S FILE FOR THE PRECIOUS BLOOD GOLDEN JUBILEE SECONDARY SCHOOL, INCLUDING A COPY OF THE REPORT SENT TO THE ATTORNEY GENERAL, WAS SUBMITTED TO THE COMMITTEE OF ENQUIRY.

7. THE FOLLOWING IS A SUMMARY OF THOSE FINDINGS.

GENERAL

8. THE PRECIOUS BLOOD GOLDEN JUBILEE SECONDARY SCHOOL WAS COMPLETED IN 1973 AT A TOTAL COST OF $4,170,300.02, OF WHICH $185,504.75 WAS IN RESPECT OF LIVING QUARTERS FOR THE CONGREGATION OF THE SISTERS OF THE PRECIOUS BLOOD (THE

SPONSORS) AND PAID FOR BY THEM. THE COST OF THE SCHOOL PORTION WAS THUS $3,984,795.27. GOVERNMENT CAPITAL ASSISTANCE, COMPRISING BUILDING GRANT AND LOAN, TOTALLED $3,701,400 AND THE DIFFERENCE OF $283,395.27, BEING COST OF ABOVE-STANDARD FACILITIES PROVIDED (E.G. LIFE, SPÉCIAL FLOORING, ETC.), WAS ADVANCED BY THE SPONSORS SUBJECT TO REPAYMENT BY THE SCHOOL.

9. IN ADDITION TO THE TWO BANK ACCOUNTS REQUIRED TO BE MAINTAINED IN THE SCHOOL'S NAME UNDER THE CODE OF AID (SEE PARAGRAPH 2 ABOVE), IT WAS FOUND THAT THERE WERE TWO OTHER

BANK ACCOUNTS (ONE CURRENT AND ONE SAVINGS) AND TEN FIXED DEPOSITS, ALL IN THE NAME OF PRECIOUS ELOCD SISTERS'' CPENED EY THE FORMER PRINCIPAL AND SUPERVISOR, SISTER LEUNG, AND LOT REFLECTED

IN THE SCHOOL'S BOOKS OF ACCOU! T.

/10. THE SCHOOL'S